You have insurance to protect your home in the event of damage from a fire or storm. You paid the premiums, and you expect your homeowners’ insurance policy to cover your property damage when you file a claim. Having a home insurance claim denied can come as a shock. But you still have options if an insurance provider wrongfully denies a valid homeowners’ insurance claim.
Common Reasons Home Insurance Claims Are Denied
Homeowners’ insurance companies have a variety of reasons for denying home insurance claims. Some are valid, but others are based on an unfair reading of the policy or an incomplete review of the damage. When denying a claim, an insurer may cite various factors. They may say that:
- The Policy Doesn’t Cover the Damage – Some policies exclude damage caused by flooding, sewer backups, mold, or certain types of storm damage. A wind damage policy may not provide coverage of damage caused by flooding.
- The Damage Existed Before the Event – The company may blame the loss on wear and tear, poor maintenance, homeowner negligence, or prior damage.
- The Claim Was Filed Too Late – Missing a reporting deadline may give the company a reason to deny payment.
- The Damage Falls Below the Deductible – The company may argue that the covered repair costs are under the deductible limit and are too low to require payment.
- The Repair Estimate Is Too High – The company may dispute the cost of labor, materials, or replacement.
What to Do After a Home Insurance Claim Denial
If your insurance company denied your claim, review the denial letter and compare it with your policy. It should explain why the company refused payment. Next, gather photos, repair estimates, receipts, inspection reports, and any exchanges with the insurance company’s claims adjuster.
Have a Wisconsin insurance claim lawyer review the denial letter and explain what your homeowners’ policy covers, and your potential next steps. You may request an internal appeal
How to Appeal a Denied Insurance Claim
The first step in appealing denied insurance claims is to respond to your insurance company in writing. Your attorney can help you explain why you disagree with the denial and provide evidence such as estimates from a contractor, photos, expert reports, weather records, or policy language to support your insurance coverage claim.
Keep copies of everything you send the insurer and make a note of all deadlines. If the insurer continues to deny payment for the claim, you and your lawyer can discuss your other legal options. Having legal representation can make all the difference in resolving homeowners’ insurance disputes during the appeals process.
Signs of Possible Bad Faith Insurance Practices
Denied property damage claims don’t always mean the insurance company is acting unreasonably. However, some conduct may raise concerns that an insurance carrier is acting in bad faith, such as when:
- The insurer delays processing a property insurance claim without a legitimate reason
- The insurer denied a claim and refuses to explain the basis for the denial
- The insurer ignores evidence that supports the claim
- The insurer offers far less than the damage appears to be worth
- The insurer misstates the policy language or coverage terms
Under Wisconsin law, the Unfair Claims Settlement Practices Act, insurance companies must follow certain procedures and act in good faith during the claims process. If you have had a denied claim without a valid reason, an insurance claim lawyer at LawtonCates can deal with the insurer and pursue the compensation you need.
Contact Our Home Insurance Claim Lawyers to Learn More
Homeowners’ insurance disputes can be highly stressful, especially when damage to your home has disrupted your life. You paid the premiums and expect coverage when needed.
Let the experienced Wisconsin insurance claim lawyers at LawtonCates provide the legal guidance and support you need. We can negotiate with insurers, provide more detail to support your claim, and challenge denied home insurance claims. Contact us today to arrange a consultation and learn how we can help you challenge a denied home insurance claim. Our law firm handles home insurance claims on a contingency basis.
